LONDON -- Vitago AG (www.vitago.de ) closed its Italian office this week and is on the verge of shutting down its two other European offices, which the German online drugstore opened in April, in an effort to shore up dwindling cash reserves.

Vitago, which sells diapers, toothpaste and shampoo over the Net, raised 43.3 million euros ($36.5 million) last April in second-round financing from venture capitalists. Flush with cash, the company embarked on a pan-European rollout, opening offices in London, Milan and Paris.